Econ 110 middterm 3 formulae

GDP Components (Expenditure Approach)

Y = C + I + G + NX (Consumption + Investment + Government Spending + Net Exports)

Nominal GDP

(Quantity of Good) x (Current Price of Good)

Real GDP

(Quantity of Good) x (Price of Good in Base Year)

GDP Deflator

(Nominal GDP / Real GDP) x 100

Real GDP Growth Rate

[(RGDP Year 2 - RGDP Year 1) / RGDP Year 1] x 100

Consumer Price Index (CPI)

(Price of Basket in Current Year / Price of Basket in Base Year) x 100

Inflation Rate (using CPI)

[(CPI Year 2 - CPI Year 1) / CPI Year 1] x 100

Inflation Rate (using GDP Deflator)

[(Deflator Year 2 - Deflator Year 1) / Deflator Year 1] x 100

Adjusting for Inflation (Value in Today's Dollars)

(Amount in Year X Dollars) x (CPI Today / CPI in Year X)

Real Interest Rate

Nominal Interest Rate - Inflation Rate

Unemployment Rate

[Unemployed / (Employed + Unemployed)] x 100

Labor Force Participation Rate

[(Employed + Unemployed) / Adult Population] x 100

Labor Force

Employed + Unemploye